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SEPECC Meeting
Tuesday, April 7, 2020
Agenda
9:00 Welcome
9:05 OCDEL and ELRC-18 Updates
9:40 Human Resources Update
9:50 Advocacy Actions
10:10 Community Partner Updates
10:55 Self-Care Moment
11:00 Next Steps and Closing
Announcements: • All participants on the call will
automatically be muted.• Questions for speakers can be
shared in the chat box.• This meeting will be recorded,
the recording will be available at www.firstup.org/covid-19by end of day.
Edwina WhiteExude, Inc.
Federal Advocacy
State Advocacy
What We Must Do
Community Partner Updates
Maura Shenker, Temple SBDC
MaryKay Mahar – PHMC Business Resources
Shante’ Brown - PHLpreK
Rachael Fennell – Elwyn Early Learning Services
How much can I borrow?
Eligible entities may qualify for loans up to $2 million.
The interest rates for this disaster are 3.75 percent for small businesses and2.75 percent for nonprofit organizations with terms up to 30 years.
Eligibility for these working capital loans are based on the size (must be a small business) and eligible nonprofit organization.
How can I use the loan funds?
These working capital loans may be used to pay fixed debts, payroll, accountspayable, and other bills that could have been paid had the disaster notoccurred. The loans are not intended to replace lost sales or profits or forexpansion.
13U.S. Small Business -Office of Disaster Assistance-As of 4/2/20
SBA’s Economic Injury Disaster Loan (EIDL) Terms
What is the EIDL Advance?
Applicants may request an advance of up to $10,000 immediately.
How do you request the EIDL Advance?
You must request the advance of the funds by submitting the new streamlined application, even if you have already submitted a Disaster Loan application.
Who is eligible for the EIDL Advance?
Any entity that is eligible to apply for a COVID-19 Economic Injury Disaster Loan.
How can I use the EIDL Advance?
The advance may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. It is not intended to replace lost sales or profits or for expansion. There is no requirement to repay the advance even if your SBA Disaster Loan application is declined.
14U.S. Small Business -Office of Disaster Assistance-As of 4/2/20
SBA’s Economic Injury Disaster Advance
SBA’s Economic Injury Disaster Loan (EIDLs) funds come directly from the U.S.Treasury.
Applicants do not go through a bank to apply. Instead apply directly to SBA’sDisaster Assistance Program at: https://covid19relief.sba.gov/#/
There is no obligation to take the loan if offered.
Collateral is required for loans over $25,000• There is no real estate collateral required. A blanket UCC-1 will be filed against
all of the businesscollateral.• Personal guarantees are required for loans greater than $200,000.
Applicants can have an existing SBA Disaster Loan and still qualify for an EIDL for this disaster, but the loans cannot be consolidated.
15U.S. Small Business -Office of Disaster Assistance-As of 4/2/20
SBA’s Working Capital Loans are Differentfrom Other SBA Loans
Example of Ineligible EntitiesWhat are some of the businesses that are ineligible for an Economic Injury Disaster Loan?
• Agricultural Enterprises -If the primary activity of the business (including its affiliates) is as defined in Section 18(b)(1) of the Small Business Act, neither the business nor its affiliates are eligible for EIDL assistance.
• Businesses involved in an illegal activity on the federal level (marijuana).
• Businesses whose purpose for being is gambling (casinos, racetracks, etc.).
• Businesses who derive more than 1/3 of their annual gross revenue from legal gambling activities.
6U.S. Small Business -Office of Disaster Assistance-As of 4/2/20
How to Apply
• Applicants apply online via SBA’s secure website at https://covid19relief.sba.gov/#/.
• Applicants without internet access should callthe SBA’s Customer Service Center at 800-659-2955 (800- 877-8339 for the deaf and hard-of-hearing) or by sending an email to [email protected].
• Correspondence can be mailed: U.S. Small Business Administration, Processing and Disbursement Center, 14925 KingsportRoad, Fort Worth, TX 76155.
17U.S. Small Business -Office of Disaster Assistance-As of 4/2/20
Assistance From SBA Partners
18U.S. Small Business -Office of Disaster Assistance-As of 4/2/20
Free assistance with reconstructing financial records, preparingfinancial statements and submitting the loan application is availablefrom any of SBA’s partners: Small Business Development Centers(SBDCs), SCORE, Women’s Business Centers (WBC), and Veteran’sBusiness Outreach Centers and local Chambers of Commerce.
For the nearest office, visit: https://www.sba.gov/local-assistance
For the nearest Small Business Development Centers (SBDC), visit:https://americassbdc.org
What is the Payment Protection Program?• A loan offered through participating lenders• Find a lender at www.sba.gov/paycheckprotection/find• Designed to provide a direct incentive for small businesses
to keep their workers on their payroll
What can the funds be used for?• Pay up to 8 weeks of payroll costs, including benefits.
Funds can also be used to pay interest on mortgages, rent, and utilities.
When can small businesses and sole proprietors apply?• Today! Independent contractors and self-employed
individuals can apply beginning April 10.
PPP OVERVIEW
3U.S. Small Business -Office of Disaster Assistance-As of 4/2/20
How will the PPP be forgiven?• Fully forgiven when at least 75% of the funds are used for
payroll.• Forgiveness is based on the employer maintaining or
quickly rehiring employees and maintaining salary levels.
Who is eligible to apply for the PPP?• Small businesses with 500 ** or fewer employees• Non-profits, veterans’ organizations, faith-based
organizations• Self-employed persons• Sole proprietorships• Independent contractors
PPP Loan Forgiveness
3U.S. Small Business -Office of Disaster Assistance-As of 4/2/20
• Maximum loan amount is $10 million• Interest rate is 1%• First payment deferred for 6 months• Loan maturity is 2 years• No collateral requirements• No personal guarantees required• No borrower or lender fees payable to SBA• Program available through June 30, 2020
What businesses with over 500 employees could be eligible?• In the hospitality and food industry and with more than
one location• If at store/location level there are less than 500 employees
PPP Loan Details
3U.S. Small Business -Office of Disaster Assistance-As of 4/2/20
What counts as payroll costs?• Salary, wages, commissions, or tips• Employee benefits including costs for
• Vacation, parental, family, medical, or sick leave• Allowance for separation or dismissal• Payments required for the provision of group health care
benefits including insurance premiums• Payment of any retirement benefit
What counts as payroll costs for sole props & independent contractors?• Wages, commissions, income, or net earnings from self-
employment
PPP Loan Payroll Costs
3U.S. Small Business -Office of Disaster Assistance-As of 4/2/20
You will owe money when your loan is due when• You use the loan amount for anything other than payroll
costs, mortgage interest, rent, and utility payments over the 8 weeks after receiving the loan
• You use less than 75% of the loan amount for payroll costs• You do not maintain your staff and payroll as of February
15, 2020 levels
To qualify for loan forgiveness: • Full-time employee headcount must be maintained• Salaries and wages must be maintained• You have until June 30, 2020 to restore your full-time
employment and salary levels for any changes made between February 15 and April 26.
PPP Loan Forgiveness Determination
3U.S. Small Business -Office of Disaster Assistance-As of 4/2/20
Any Questions?
www.sba.gov/coronavirus
U.S. Small Business -Office of Disaster Assistance-As of 4/2/20
For more information on SBA’s emergency capital programs visit:
The PA SBDC Network will be hosting a live webinar to explain the SBA funding programs, covering both the PPP and EIDL application process every morning from
9:00am - 10:15am.
Recorded webinars with SBA updates as of 4/3 are available in English and Spanish.
[email protected] (Kiki)
Temple SBDC WebsiteSBDC Resource Guide
PHMC COVID-19 BUSINESS SUPPORTDo you need help navigating through all the changes so you can make it through to the other side with your business intact?
PHMC has general business support resources and expert consultation for you, whether you need an answer to one question, or you need longer, on-going support. These supports are available AT NO COST to ALL PROVIDERS:
• Family, group, and center based• Single site, multi-site, and multi-service• Nonprofit and for-profit• Any STAR level
Fund for Sustaining Quality (FSQ) Website http://sustainingquality.org/ask-a-questionAnyone can visit any time to review the COVID-19 Business Support repository of resources from PHMC and partners to support early education operators, including upcoming new webinars, recorded webinars, links partner and other community resources including grant and loan applications, and new tools as they are created.
PHMC COVID-19 BUSINESS SUPPORT
“Ask a Question”
Do you need a discreet answer to a specific question? This feature is set up on the FSQ website to get answers to questions about business operations, stability, or sustainability. Questions and answers will be made anonymous and used to develop a Frequently Asked Questions which will be posted on the site for access at any time. CLICK HERE to ask a question! You can also access this on the FSQ website.
Interactive Business Support Webinars
Register for upcoming webinars or watch previously recorded sessions posted to the FSQ website. Content includes how-to-guides on applying for grants and loans, reviews and clarification of financial terminology, explanation of documents needed for available local, state, and federal grant and loan resources. New webinars will be develop based on your incoming questions and TA requests.
PHMC COVID-19 BUSINESS SUPPORT
Individual Business Support TA for Providers Operating in Philadelphia
Expert consultation is available for one-on-one sessions to help you navigate through the COVID-19 pandemic to stabilize ECE businesses, so you are poised to re-open when that time comes. CLICK HERE to apply. A link is also available on the FSQ website.
Do you need help making a timely decision on how to:
•Apply for available loans/grants•Save money while closed•Track losses•Plan for staffing: retain or layoff, personnel legal matters OR
Do you need on-going help to plan through reopening and recovery:•Personnel retention strategies and family retention strategies,•Budget projections and program financing•Health and safety protocols
For more information, email [email protected]
These support services are available through the Fund for Sustaining Quality, the Early Childhood Education Fiscal Hub, and the Fund for Quality with generous fundingfrom the William Penn Foundation and Vanguard Strong Start for Kids
Rachael FennellElwyn Early Learning Services Parent Partner
The importance of self-care
Take a break from the stressor. Exercise. Smile and laugh.
Get social support. Meditate.
Next steps & closing
• Updates from attendees• Stay connected through this ongoing
situation
SEPECC Call and COVID-19 Resources:
Karen Grimm-Thomas - [email protected] Getzinger - [email protected] Shenker – [email protected] Mahar – [email protected]’ Brown – [email protected] Fennell – [email protected] Farwell-Ozer – [email protected] Groetsch – [email protected]
https://www.firstup.org/covid-19/
This Photo by Unknown Author is licensed under CC BY-SA-NC
Thank you!
